The British dairy sector faces significant challenges as 9% of farmers may halt milk production within two years, reports the National Farmers Union (NFU).
- Survey findings reveal that 23% of dairy farmers are undecided about their future in milk production.
- Dairy farmers express concerns over rising feed and energy costs, impacting their business viability.
- Farmers identify the cost of necessary environmental compliance as a significant obstacle.
- NFU urges for resilient, transparent supply chains amidst regulatory changes and global demand.
The British dairy industry is encountering severe difficulties, with a recent survey conducted by the National Farmers Union (NFU) indicating that 9% of farmers may discontinue milk production over the next two years. Additionally, 23% of dairy farmers remain uncertain about sustaining their operations, underscoring a precarious outlook for the sector.
A major cause for concern among farmers is the escalating cost structure. An alarming 84% of respondents highlighted their worries about feed prices, while 83% are troubled by the escalating energy costs. Furthermore, 87% cited the impact of government regulation as another significant worry. These rising expenses are creating a challenging environment for dairy farmers, who are already grappling with low-cost production prices.
Investment requirements for compliance with environmental regulations, particularly in suitable slurry storage, pose a daunting challenge for farmers seeking to increase production. The scale of investment needed is considerable, thereby discouraging many from pursuing expansion at a time when profitability is under strain.
Michael Oakes, chair of the NFU dairy board, has articulated the severity of the situation, stating that inflationary pressures and below-cost pricing are threatening the very resilience of British dairy operations. Oakes calls for the development of resilient and collaborative dairy supply chains to counteract this trend and ensure long-term sustainability.
Despite the challenges, Oakes expresses optimism for the future due to the increasing global demand for British dairy products. However, he emphasizes the necessity of supportive government policies to establish the right environmental, regulatory, and trade frameworks. Such measures are essential for enabling farmers to produce high-quality, nutritious, and sustainable food for the future.
The British dairy industry’s future hinges on addressing cost pressures and fostering supportive supply chain policies.
